Question

What are some of the considerations a tenant must consider when deciding to renew a lease? What are some of the considerations a tenant must consider when deciding to renew a lease?

Answer 1

Tenant should take the following considerations before deciding to renew a lease:

1. Recent market conditions such as availability of the properties, benchmark rent or lease in that area and the trends in leasing so that lease agreement is renewed with latest details.

2. Consideration and due care of assignment or subletting provisions so that tenant can use the condition if he or she wants to accommodate the third party to the property for a given period of lease.

3. The consideration of the terms and conditions of the maintenance & repair of the leased property. It will prevent the conflict in the future and it will comply with the leasing laws prevalent in the area.

4. The consideration of the payment responsibility of the hidden costs such as VAT charges, taxes and other expenses related to the property. If it is shared, or it is to be paid by the Tenant or the owner of the property.

5. Provision of the lease break clause and the subsequent notice period from one party to another party before cancelling the lease agreement.